Centre imposes stock limit on wheat to prevent hoarding

New Delhi: To prevent hoarding of foodgrains amid surge in prices, the central government on Monday imposed stockholding limits on wheat for different trading levels, including retailers, wholesalers and processors.

The stock limit for retailers has been fixed at 10 tonnes. For big-chain retailers it has been fixed at 10 tonnes per outlet with an overall limit of 3,000 tonnes, Department of Food and Public Distribution Secretary Sanjeev Chopra said at a media briefing.

A wholesaler won’t be allowed to have more than 3,000 tonnes of wheat in their stock.

For wheat processors, the stock limit is 70% of the monthly installed capacity multiplied by the remaining months of the current financial year. The stock limit has been implemented with immediate effect and will be in force till the end of the financial year 2024-25.

“The Removal of Licensing Requirements, Stock Limits and Movement Restrictions on Specified Foodstuffs (Amendment) Order, 2024 has been issued with immediate effect from today i.e. 24th June 2024 and will be applicable until 31st March 2025 for all States and Union Territories,” Ministry of Consumer Affairs, Food & Public Distribution said in a statement.

The government’s move to impose restrictions on wheat stocks comes amid a rise in wheat prices. Wheat and wheat flour prices have risen by around Rs 2 per kg when compared with the previous year’s price.

Last week a high-level meeting under the chairmanship of Home Minister Amit Shah was held to review the wheat prices. During the meeting, Shah directed officials to monitor wheat prices closely.

Chopra said the stock limit on wheat has been imposed in view of recent media reports that the prices of essential commodities are increasing. “We want prices of wheat to be stable,” he said.

The food secretary stressed that there is no shortage of wheat in the country. On exports, Chopra said as of now there is no ban on wheat exports.